This is an extension of my DD series on GME. I have been investing in, learning about, and following GME since September 2020, and in that time I have learned many things. It is also likely my last post on GME for a while as I find myself repeating key points, and others are doing excellent DD on GME in the meantime.
In this post, I’ll share as much understanding as I can about how we got here, about shorts, and my thoughts on the future of GME. I’ll also try to include many tips around trading/investing with GME going forward.
TL;DR: The squeeze has been reset. Shorts have re-set their short positions at much higher sell points, and longs have likely cycled through. I don’t believe a VW-style squeeze is possible because Robinhood will just get choked again, but I do believe $GME is worth much more than $50/share. Fuck “diamond handing”, I’m starting to accumulate shares again. I share below how I’m trading GME.
Previous Important Posts
If you haven’t read them and have time, they will provide some background on my previous analysis.
- EndGame Part 1 (DTC Infinity) covered the short positions, the float, and potential snowball impacts of increasing prices, and argued that part of the reason that shorts haven’t closed was that it was pretty much impossible for shorts to close
- EndGame Part 2 covered Cohen, fair market cap analysis, and potential investors, in which I talked about the amazing mid-to-long term potential for GME.
- After the Citron tweet, I shared this fan fiction on what looked like blatant market manipulation by shorts on the day of the tweet, and offered some education on strengthening your position. This one got buried and is worth reading.
- EndGame Part 3 covered the gamma squeeze, potential shady tactics by MMs, and some tips for staying safe.
- EndGame Part 4 covered the continued gamma squeezing and the resulting tenuous position of the \~50M shorts that were still in GME.
- EndGame Part 5 (deleted by mods, posted by someone else in comments) went into the implications of the absolute mindfuck trick the shorts pulled when they limited buying of GME (and other heavily shorted stocks)
Important External Reading
These three non-reddit articles are critical for understanding the short playbook. This is essential reading if you want to understand how the funds that are short GME may have manipulated/directed the DTCC to strong-arm Robinhood to halt buying on the 28th. My key takeaway from all this is that the core investigation needs to be happening with the DTCC/NSCC to understand why the margin changes were forced upon RobinHood, and who specifically asked for the buying halt on the 28th. I believe shorts worked together with brokerages and the DTCC to rob investors of over $40B of value, representing what is probably one of the greatest financial crimes of the century.
- Anatomy of a Short Attack - Seeking Alpha article from 2014. Can’t link it. Search for it. Key tactics that shorts use (and have used on GME)
- Flooding the offer side of the board
- Leveraging counterfeit shares
- Media assault (see my post on coordinated put buying with the Citron post, and pay special attention to media treatment of GME to drive down sentiment)
- Analyst reports